Trans Adriatic Pipeline (TAP) has signed a Memorandum of Understanding and Cooperations (MOUC) with the Ministry of Economy of Montenegro concerning the development of natural gas markets and supply diversity in Southeast Europe.

The TAP pipeline system may link with another proposed pipeline to take natural gas to Croatia, Bosnia and Herzegovina, Montenegro, and Albania.

This new MOUC is the third initiative that TAP has undertaken during the last months. In February 2011, TAP and Croatian system operator Plinacro concluded an MOUC aimed at establishing cooperation in a number of areas; and in April 2011, TAP and Bosnian gas system operator BH-Gas entered into a similar agreement.

Plinacro, together with BH-Gas and the Ministry of Economy of Montenegro, are promoting the Ionian Adriatic Pipeline (IAP), which intends to deliver gas to Croatia, Bosnia and Herzegovina, Montenegro and Albania. The IAP, which would connect to the TAP system at a tie-in point in Albania, will bring major energy security and economic benefits to the region.

The TAP consortium, comprised of European energy leaders Statoil, E.ON Ruhrgas and EGL, is aimed at constructing a natural gas pipeline via Greece, Albania and Italy to bring Caspian gas to Europe.

The pipeline will be a key component in opening the European Union-designated Southern Gas Corridor. TAP is envisaged with reverse-flow capabilities that will also facilitate reliability in the event of regional energy supply disruptions.